Steve Cotterill, the Cheltenham Town manager, has turned down the job at Oxford United.

United owner Firoz Kassam asked Cheltenham chairman Paul Baker for permission to speak to 36-year-old Cotterill last week and met him on Thursday.

Cotterill, who has been at Cheltenham for four years, was told the job was his if he wanted it.

But Baker said yesterday: "Steve said he was very happy at Cheltenham, and he was staying."

Cheltenham, who only joined the Football League last season, are currently second in Division 3, effectively just two places behind Oxford, who are bottom of Division 2.

Cotterill was tipped for the Oxford job two years ago, when Malcolm Shotton was appointed. The News of the World claimed similarly-named Steve Coppell could be in line but Denis Smith, who is still advising Kassam, said: "I expect they have just got hold of the list of out-of-work managers from the League and seen his name on it."

Smith said he was sifting through a list of applicants and hoped to produce a shortlist soon.

"The next step should be interviews. The club want to sort things out as soon as possible."

He added: "I can only advise the chairman. In the end it's his decision who he appoints."